Buying a house in Australia as Permanent Resident

Buying a house in Australia as a permanent resident: requirements and benefits

Every year, the number of migrants calling Australia home has been increasing significantly. According to the Australian Bureau of Statistics, in 2019, this number reached 7.5 million, which means 29.7% of the whole Australian population.

Naturally, these statistics also reflect on housing. Many Permanent Residents rent a place when they first arrive in the country and, once settled down, it is common to start looking for their own property to buy in Australia. And this is the time when most questions start rising: 

  • Can I buy a house as a Permanent Resident?
  • What are the differences between Migrants and Australian citizens when it comes to buying properties in Australia?
  • Am I eligible for any kind of grant once I get the PR?

Don’t worry, we will help you out in this article!

Buying a house in Australia as a permanent resident – what you need to know:

To begin with: Yes, permanent residents not only can buy a house in Australia, but they also have pretty much the same benefits and requirements as Australian citizens do.

First-home buyers are eligible to borrow up to 95% of the property’s value and access many Government grants, such as:

First Home Owner Grant (FHOG)

If you are building or buying a new house up to $750,000 (depending on the state or territory) for the first time, you might be eligible for the First Home Owner Grant.

This is a national scheme created in 2000 and administered by each state and territory that reduces the impact of the GST on home prices. It basically helps you increase your deposit, which may improve your eligibility for a home loan.

Stamp duty concessions

This benefit applies for first home buyers purchasing new or existing homes and allows them to access full tax concession, depending on the price of the property and the state or territory they are buying at. 

*This post has been written on 17/11/2020, and we might see some changes on the Stamp Duty Concession by State and Territories, so please stay tuned to our social media and further articles, as we will keep you posted. 

First Home Super Saver Scheme

The FHSS scheme allows permanent residents and Australian Citizens to save up to $30,000 to buy their first house in voluntary contributions to their superannuation fund.

Should I wait until I get Australian citizenship to buy a house?

The answer is no. It is not worth waiting until you get citizenship, given that the benefits will not vary from the ones you already have as a PR. To be honest, there are indeed two differences that still won’t change much:

  1. The Home Builder Grant, created to help Australia’s economic recovery after the Pandemic, only applies to Citizens. Nevertheless, this benefit is set to end on 31/12/2020.
  2. The First Home Loan Deposit Scheme, which allows only a 5% deposit without having to pay for the lender’s mortgage insurance, is also an exclusive benefit for citizens. However, there are only 10,000 grants per year for the whole country.

What if my partner is not a Permanent Resident yet?

If your partner holds a temporary visa and you are applying for a Partner Visa that hasn’t been granted yet, you are still eligible to apply for a home loan and borrow up to 95% of the total amount. 

However, not all banks approve loans for temporary residents, so we recommend you to contact us to understand your case, analyze possibilities, and find the best lender to suit your needs.

First steps to buying a house as a permanent resident in Australia

If you are a permanent resident and want to start this journey towards the dream of buying a house in Australia, we will be more than happy to help you find the best loan and understand which of the benefits you would qualify for. 

We also recommend you to read our article on the First steps to buy a house in Australia to understand where to start from. 

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